Major changes to the Affordable Homes Programme will see regeneration ambitions ramped up as replacement homes will be funded alongside new affordable homes.
Homes England is committed to improving housing estates across the country and the change in funding rules will see the agency supporting its partners to replace housing that is outdated and no longer fit-for-purpose, with a larger number of high-quality, energy efficient new affordable homes.
Housing Minister Rachel Maclean said: “We remain committed to building the affordable homes this country needs and a key part of this is improving the quality and supply of social housing.
“The changes I am announcing today will unlock more affordable housing by ensuring we replace old homes with ones that are fit for the future. This is absolutely critical in helping us regenerate communities, speed up housing delivery and provide high-quality homes for more families.
“I’ll continue to work with Homes England and developers to get delivering through this scheme as quickly as possible.”
Peter Denton, Chief Executive of Homes England, said: “The affordable housing sector has always had to balance the investment it makes in existing homes with the investment in makes in building new homes. Over the past year, increasing financial pressures have made achieving that balance even more difficult to manage.
“This change is something the sector has been calling for, and with it there is a real opportunity to accelerate the regeneration of social housing and help level up communities across the country.”
This change to the Affordable Homes Programme has been agreed with the Department for Levelling Up, Housing and Communities, and is part of the Agency’s wider efforts to help bolster the affordable housing sector and maintain housing supply.
Grant funding for estate regeneration is available to partners looking to replace existing homes with new affordable homes and build additional new affordable homes. Grant funding from the Affordable Homes Programme is also still available to those looking to only build new affordable homes.
Homes England is keen to see proposals that can deliver at pace, maximise the number of new affordable homes, and enhance wider efforts to level up and regenerate communities. All schemes must start on site by 31 March 2025 and will need to complete within the Affordable Homes Programme’s current timeframes.
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